Remarks of Chairman Arthur Levitt
National Roundtable on Saving and Investing
Facts on Saving and Investing Campaign
Federal Trade Commission
Washington, D.C.
March 30, 1998
Thank you, Chairman Pitofsky, for hosting the
first National Roundtable on Saving and Investing.
This roundtable kicks-off the first week of the Facts
on Saving and Investing Campaign. Throughout this
week, Americans across the country will learn how to
attain financial security, one of the most important
and profitable lessons you can learn in life.
The campaign includes government agencies,
consumer groups, and the financial services industry.
Many of the campaign's partners are sitting at this
table today. But the most important partners in this
campaign are the individuals we hope to reach: the
people who can use the facts we have to make their
financial lives better. We will succeed only if the
discussion we have around this table here today is
repeated at kitchen tables across America.
Through IRAs, 401(k)s and other retirement
accounts, Americans today have more of their money in
the stock market than ever before. But tens of
millions lack the basic saving and investing
information they need to prepare for retirement or to
meet other financial goals. Three out of four
Americans have no idea how much money they'll need to
save for retirement. Two thirds have never even tried
to figure it out.
At a time when Americans are increasingly
responsible for their own financial futures, that
spells trouble. Too many people don't know how to
determine saving and investment goals, or assess the
risks of different financial products. Too many
people don't know how to choose an investment, or
investment professional, or where to turn for help.
According to one poll, while 63 percent know the
difference between a halfback and a quarterback, only
14 percent can tell the difference between a growth
stock and an income stock. Millions don't understand
the purpose of diversification. Millions have market
expectations that are totally out of line with
historic averages.
Sixty-five million American households will
probably fail to realize one or more of their major
life goals because they have not developed a
comprehensive financial plan. We are in the midst of
a financial literacy crisis, and many will pay a high
price for their lack of financial knowledge. Many
Americans are unknowingly aboard a financial Titanic,
headed for trouble. But they can steer clear of
financial disaster if they get the facts in time to
chart a new course.
The campaign's job is to motivate Americans to
get the facts on saving and investing, and to avoid
costly mistakes. We have a new message for America,
the slogan of our campaign: "Get the facts. It's
your money. It's your future."
The slogan emphasizes our key messages for the
campaign:
* Get the facts -- Knowing how to secure your
financial well-being is one of the most important
things you need to know in life, but no one is born
knowing how to save and invest, and few learn about in
school.
* It's your money -- Financial security starts when
you take personal responsibility for your financial
well-being.
* It's your future -- The small steps you take
today can really add up over the years or a lifetime.
Whether your goal is buying a home, sending your
children to college, or securing enough money for
retirement, you're more likely to achieve your goals
if you plan now.
Tomorrow is opening day for the baseball
season. Let me make a pitch to every American: fill
out the Ballpark Estimate now. It's a simple one-page
form that helps you calculate roughly how much money
you need to save this year for retirement. You can
get a free copy of the Ballpark Estimate by calling
toll-free 1 800 732-0330 or visiting the campaign's
web site at www.investoreducation.org.** Prepared by
the American Savings Education Council, the Ballpark
Estimate belongs in every home. Americans can also
get the facts by ordering the campaign's Financial
Facts Tool Kit from our toll-free number, again that
number is 1 800 732-0330.
At today's roundtable, we have gathered an
impressive number of experts to discuss where we are
and where we need to go to assure Americans get the
facts. We'll discuss what government, industry, the
media, and Americans can do to get the facts on saving
and investing.
Let's chart a new course. Let's steer clear
of danger. Let's take every American to a safe
harbor. It's called financial security.
# # #
**Webmaster's note, 9/13/01: You can find the Ballpark
Estimate worksheet at http://www.asec.org/.